Lukewarm reaction to Citi's crisis derivatives plan

Regulators and dealers have expressed caution about a Citi proposal to design derivatives intended to pay out in the event of a financial crisis, arguing the sellers of such protection may not be in a position to pay out if markets crumble. “We shouldn’t stifle financial innovation, but a reasonable amount of scepticism is useful for any innovation that promises to be the cure of the next systemic crisis. It needs very close monitoring to understand what’s going on, especial